Thousands of Americans are till today suffering financial losses because of mortgage problems. Homeowners across the nation come close to the reality of losing their homes because of the mortgage stress. To better their situation many people borrowed heavily in order to tap the maximum potential for loan against their properties. Many such plans have backfired and because the real estate industry problems still continue, homeowners have attempted different kinds of things, not all of which is correct or a good way to settle second mortgages.
In order to understand and get out of such a situation you should know that while a second mortgage may have seemed like a good idea when you took it, it is also wise to go for a settlement on your second mortgage as soon as possible and remove yourself of additional headaches.
You might want to ask, so why should I go for a second mortgage settlement? Here we try to figure out why. Here are 10 good reasons to settle your second mortgage loan-
- A second mortgage on your home, only adds to the stress of an additional payment obligation for you each month. Settling the second mortgage is always something worth considering, regardless of whether you want to keep your home at a later date or let it go.
- Home prices are still generally at low levels. As a result, as a homeowner with a second mortgages you are likely to end up being with a mortgage loan for years, which actually increases your burden and increases the possibilities of defaulting.
- As an attempt to find 10 good reasons to settle your second mortgage loan, you must remember that second mortgages are subordinate to first mortgages. If you decide to sell your home to gather money to pay off a loan, the proceeds will first go towards settling the first loan and not the second mortgage. This happens, when there is not enough money to settle both loans, in such a case by keeping a second mortgage loan you are only adding to your troubles.
- Too much accumulation of debt could lead to lenders resorting to legal action against you. You might even have to face liens on your possessions, wage garnishments and have tax-return interceptions apart from other hassles. By settling your second mortgage loan you can avoid these hassles and also restore your credit.
- By settling the second mortgage, you may even be able to save your home. This is a good indication to your lenders that you are not totally washed out.
- A good idea as far as 10 good reasons to settle your second mortgage loan go, is that you talk to your lender. If you are in serious and deep debt, with your first mortgage, use this as a bargaining tool. The lender might just agree to settle the second mortgage because to him you are a risk and he wouldn’t want to take more risk.
- Moreover a second mortgage is an unsecured debt; there are chances that it might never be recouped. This is more so the case, if you file for bankruptcy on the debt. It is in the lender’s interest to accept something, rather than let you get away with nothing.
- Talk to your lender and explain on at least 10 good reasons to settle your second mortgage loan. If you are still obligated to pay the second mortgage after foreclosure, some lenders might see it as an opportunity to get something out of you. Depending on who your debt settlement attorney is, and how good a pitch he can make for you, the lender might be willing to accept a reduced settlement.
- If you are contemplating a short sale, talk to the lender who holds the second mortgage. If and when you reach an agreement, the lender could release the lien and you can proceed with a short sale, which will help you gather funds.
- If you have missed on payments, your credit rating and score will take a beating. As a result of a bad credit score it becomes very difficult for you to talk to other lender or improve your financial situation with the banks in any way. Depending on your situation, this could be one of the most important of the 10 good reasons to settle your second mortgage loan.
Talk to your lender, or get a good debt settlement attorney to do the job for you. You might want to consult the wise advice of experienced debt settlement attorney, Shah Peerally in this regard. You should not be afraid to take to your lender. Call at 1-510-742-5887 OR write to help@YourDebtSettlementAttorney.com there are no upfront fees!